(Agriculture.com) – U.S. soybean futures settled higher Friday on tight current supplies and uncertainty about weather conditions for crops.Chicago Board of Trade August soybeans settled up 21 1/2 cents, or 1.5%, at $14.90 3/4 a bushel.
Soybean supplies have been tight since severe drought cut the size of last year’s U.S. harvest, and traders now are concerned about strong demand from domestic processors for scarce soybean supplies remaining in storage.
Traders are also concerned about the possibility of unfavorable weather for crops. Even though current forecasts for the next two weeks are mostly favorable for corn and soybean crops, forecasts could shift over the weekend. Traders are also worried that hot, dry weather could appear and damage crops in August, a key growing period for soybeans.
Corn futures ended mixed. Traders bought nearby futures, with many exiting earlier bearish bets on prices to reduce risk ahead of the weekend. Deferred futures were flat to slightly lower on the prospect of greater supplies this fall.
Wheat futures rose on hopes for strong export demand, after the government on Friday morning announced a private export sale of 120,000 metric tons of soft red winter wheat to China.
CBOT September corn rose three cents, or 0.6%, to $5.44 a bushel. CBOT September wheat rose four cents, or 0.6%, to $6.64 1/2 a bushel.
